Estimated Warranty Liability Savory sold $558,000 of consumer electronics during July under a two-year warranty....
90.2K
Verified Solution
Link Copied!
Question
Accounting
Estimated Warranty Liability
Savory sold $558,000 of consumer electronics during July under a two-year warranty. The cost to repair defects under the warranty is estimated at 5.5% of the sales price. On November 10, a customer was given $212 cash under terms of the warranty.
(a) Provide the journal entry for the estimated warranty expense on July 31 for July sales. If an amount box does not require an entry, leave it blank.
